Kenya’s National Assembly has approved the sale of a 15 percent government stake in Safaricom PLC to South Africa’s Vodacom Group, clearing a key legislative hurdle for one of the country’s largest telecom ownership transitions.
The approval allows the National Treasury to proceed with a transaction expected to generate approximately Ksh.240 billion ($1.86 billion) in total proceeds for the government. Lawmakers adopted the joint report of the Departmental Committee on Finance and National Planning alongside the Public Debt and Privatisation Committee through an acclamation vote.
Under the structure of the deal, Vodacom’s shareholding in Safaricom will rise from 40 percent to 55 percent, giving the company majority control of the Kenyan telecom operator. The transaction, valued at about Ksh.204.3 billion ($1.58 billion), also includes an upfront dividend-equivalent payment of Ksh.40.2 billion ($311.5 million) to the government in respect of its remaining stake.
Brandspur Banking News Desk reports that the government plans to sell roughly six billion shares at a price of Ksh.34 ($0.26) per share. The pricing represents a premium of about 23.6 percent over Safaricom’s six-month volume-weighted average share price as of December 2025, when shares traded at approximately Ksh.29.50 ($0.23) on the Nairobi Securities Exchange.
Following the transaction, the government’s ownership in Safaricom will reduce from 35 percent to 20 percent. All proceeds from the sale are expected to be channelled into the National Infrastructure Fund, which finances development projects across key sectors including transport, energy, water, and aviation.
The approval process faced some opposition in Parliament, with concerns raised over an ongoing court case challenging the transaction. However, the Speaker ruled that the legislative process could proceed, noting that Parliament was not a party to the legal proceedings and retained its constitutional authority to deliberate on the matter.
As part of the approval, lawmakers attached several conditions to safeguard public interest. These include executing the share sale through the Nairobi Securities Exchange block trading platform, maintaining Safaricom’s shared prosperity model for a period of ten years, and prohibiting redundancies linked to the acquisition.
The government will also retain two board seats in Safaricom to ensure continued oversight, while the company will maintain a Kenyan chairperson and independent directors. Vodacom has additionally committed to supporting Safaricom’s philanthropic initiatives through its foundation.
Regulatory approvals remain a critical next step before the transaction can be finalised. The Central Bank of Kenya is still reviewing Vodacom’s suitability as a controlling shareholder, particularly in relation to governance standards and the safeguarding of customer deposits estimated at Ksh.250 billion ($1.94 billion).
The Competition Authority of Kenya has yet to formally assess the deal, while the COMESA Competition Commission has already granted approval, determining that the transaction does not pose anti-competitive risks within the region.
The divestment comes at a time when Kenya is grappling with rising public debt, currently estimated at Ksh.12 trillion. Lawmakers noted that limited fiscal space and growing debt servicing obligations have significantly constrained development spending, increasing the urgency for asset privatisation as a revenue-raising strategy.
Final completion of the transaction now depends on regulatory clearance and fulfilment of all contractual conditions before the government proceeds with execution on the Nairobi Securities Exchange.
